UNITED STATES
                        SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C.  20549

                                   FORM 10-QSB
(Mark  One)

 X     QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
---    OF  1934
       For  the  quarterly  period  ended:  June  30,  2003
                                            ---------------


       TRANSITION  REPORT  UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
---    ACT  OF  1934
       For  the  transition  period  from  _______________  to  ________________

                        Commission file number:    33-43317
                                                  ----------

                              EASTON BANCORP, INC.
                      -----------------------------------
     (Exact  name  of  small  business  issuer  as  specified  in  its  charter)

         Maryland                                      52-1745344
      -------------                                -------------------
(State  of  incorporation)                 (I.R.S. Employer Identification  No.)

                  501 Idlewild Avenue, Easton, Maryland 21601
                ------------------------------------------------
                    (Address of principal executive offices)

                                 (410) 819-0300
                                ---------------
                          (Issuer's telephone number)

                                 Not Applicable
                ------------------------------------------------
   (Former name, former address and former fiscal year, if changed since last
                                    report)

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

     Check  whether  the  issuer  filed all documents and reports required to be
filed  by  Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities  under  a  plan  confirmed  by  a  court.
Yes       No
   ---      ---

                      APPLICABLE ONLY TO CORPORATE ISSUERS

     State  the  number of shares outstanding of each of the issuer's classes of
common  equity,  as  of  the  latest  practicable  date:

     On  August  5, 2003, 764,507 shares of the issuer's common stock, par value
$.10  per  share,  were  issued  and  outstanding.

     Transitional  Small Business Disclosure Format (check one): Yes      No  X
                                                                    ---      ---


<PAGE>
<TABLE>
<CAPTION>
                                     PART I
                              FINANCIAL INFORMATION

ITEM  1.  FINANCIAL  STATEMENTS.

                       EASTON BANCORP, INC. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)

                                                        June 30,    December 31,
                                                          2003         2002
                                                      ------------  -----------
<S>                                                   <C>           <C>
                                  ASSETS
Cash and due from banks                               $  3,302,294  $ 2,361,869
Federal funds sold                                       1,204,761    1,233,376
Investment in Federal Home Loan Bank stock                 483,500      431,500
Investment securities available-for-sale                 4,666,248    5,040,366
Loans held for sale                                      6,052,328    4,193,610
Loans, less allowance for credit losses of
  $1,069,489 and $924,859, respectively                 80,502,620   71,465,781
Premises and equipment, net                              1,860,225    1,569,357
Accrued interest receivable                                428,783      420,941
Bank Owned Life Insurance Policy                         1,372,071    1,335,376
Other assets                                               113,808      131,416
Deferred and prepaid income taxes                          175,130      157,129
                                                      ------------  -----------
        Total assets                                  $100,161,768  $88,340,721
                                                      ============  ===========

               LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
  Noninterest-bearing                                 $ 11,549,182  $ 7,804,457
  Interest-bearing                                      70,144,020   66,339,109
                                                      ------------  -----------
        Total deposits                                  81,693,202   74,143,566
Accrued interest payable                                   111,436      110,480
Securities sold under agreements to repurchase                 -0-       60,964
Note payable                                             9,666,436    7,510,135
Other liabilities                                          261,202      280,963
                                                      ------------  -----------
        Total liabilities                               91,732,276   82,106,108
                                                      ------------  -----------

Stockholders' equity
  Common stock, par value $.10 per share;
    Authorized 5,000,000 shares, 764,507 and 565,833
    shares, respectively, issued and outstanding            76,451       56,583
  Additional paid-in-capital                             7,248,958    5,282,086
  Retained earnings                                      1,044,206      821,778
                                                      ------------  -----------
                                                         8,369,615    6,160,447
  Accumulated other comprehensive income                    59,877       74,166
                                                      ------------  -----------
        Total stockholders' equity                       8,429,492    6,234,613
                                                      ------------  -----------

  Total liabilities and stockholders' equity          $100,161,768  $88,340,721
                                                      ============  ===========
</TABLE>

See  accompanying  Notes  to  Consolidated  Financial  Statements.


                                        1
<PAGE>
<TABLE>
<CAPTION>
                      EASTON BANCORP, INC. AND SUBSIDIARY
                        CONSOLIDATED STATEMENTS OF INCOME
                                  (Unaudited)

                                       Three Months Ended       Six Months Ended
                                            June 30,                 June 30
                                     ----------------------  ----------------------
                                        2003        2002        2003        2002
                                     ----------  ----------  ----------  ----------
<S>                                  <C>         <C>         <C>         <C>
Interest revenue
  Loans, including fees              $1,355,173  $1,194,376  $2,601,961  $2,365,438
  Investment securities                  45,419      67,770      94,252     139,917
  Due from banks                            -0-         -0-         -0-         -0-
  Federal funds sold                      4,376      20,659      11,808      28,800
                                     ----------  ----------  ----------  ----------
    Total interest revenue            1,404,968   1,282,805   2,708,021   2,534,155

Interest expense                        490,574     502,788     974,605   1,029,431
                                     ----------  ----------  ----------  ----------

    Net interest income                 914,394     780,017   1,733,416   1,504,724

Provision for loan losses                58,815      53,088     117,070     105,903
                                     ----------  ----------  ----------  ----------

    Net interest income after
      provision for loan losses         855,579     726,929   1,616,346   1,398,821
                                     ----------  ----------  ----------  ----------

Other operating revenue                 220,603     164,874     422,736     288,419
                                     ----------  ----------  ----------  ----------

Other expenses
  Salaries and benefits                 493,806     370,869     944,277     732,390
  Occupancy                              57,921      37,342      97,417      74,077
  Furniture and equipment                40,650      35,304      73,108      72,477
  Other operating                       258,261     225,790     476,344     403,305
                                     ----------  ----------  ----------  ----------
    Total operating expenses            850,638     669,305   1,591,146   1,282,249
                                     ----------  ----------  ----------  ----------

Income before income taxes              252,544     222,498     447,936     404,991

Income taxes                             82,000      84,200     168,000     154,200
                                     ----------  ----------  ----------  ----------

Net income                           $  143,544  $  138,298  $  279,936  $  250,791
                                     ==========  ==========  ==========  ==========

Earnings per common share - basic    $     0.23  $     0.25  $     0.47  $     0.45
                                     ==========  ==========  ==========  ==========

Earnings per common share - diluted  $     0.21  $     0.24  $     0.44  $     0.44
                                     ==========  ==========  ==========  ==========
</TABLE>

See  accompanying  Notes  to  Consolidated  Financial  Statements.


                                        2
<PAGE>
<TABLE>
<CAPTION>
                      EASTON BANCORP, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (Unaudited)

                                                         Six Months Ended
                                                             June 30,
                                                    ---------------------------
                                                        2003           2002
                                                    -------------  ------------
<S>                                                 <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Interest received                                 $  2,730,154   $ 2,583,854
  Fees, commissions and rent received                    454,018       217,660
  Cash paid for operating expenses                    (1,431,530)   (1,153,895)
  Proceeds from loan sales                            13,728,566     6,386,332
  Loans originated for sale                          (15,587,284)   (6,116,832)
  Interest paid                                       (1,010,344)   (1,072,913)
  Taxes paid                                            (287,871)     (111,261)
                                                    -------------  ------------
                                                      (1,404,291)      732,945
                                                    -------------  ------------

CASH FLOWS FROM INVESTING ACTIVITIES
  Cash paid for premises, equipment and software        (366,530)      (31,855)
  Net loans to customers                              (9,378,574)   (3,595,399)
  Proceeds from sales/maturities of investments        1,675,882     1,019,393
  Purchase of investment securities                   (1,352,101)     (604,877)
  Purchase of Federal Home Loan Bank stock               (52,000)          -0-
  Proceeds from sale of other real estate owned          215,220           -0-
                                                    -------------  ------------
                                                      (9,258,103)   (3,212,738)
                                                    -------------  ------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Net increase (decrease) in time deposits            (1,671,829)    3,568,058
  Net increase (decrease) in other deposits            9,221,465    (1,891,202)
  Dividends paid                                         (57,508)     (168,096)
  Proceeds from warrants exercised                     1,986,740           -0-
  Net decrease in securities sold under agreements
    to repurchase                                        (60,964)         (553)
  Net proceeds from borrowings                         2,156,300        (3,803)
                                                    -------------  ------------
                                                      11,574,204     1,504,404
                                                    -------------  ------------


NET INCREASE (DECREASE) IN CASH                          911,810      (975,389)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD       3,595,245     6,246,506
                                                    -------------  ------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD          $  4,507,055   $ 5,271,117
                                                    =============  ============
</TABLE>


                                        3
<PAGE>
<TABLE>
<CAPTION>
                      EASTON BANCORP, INC. AND SUBSIDIARY
                CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
                                  (Unaudited)

                                                                 Six Months Ended
                                                                     June 30,
                                                             -------------------------
                                                                 2003          2002
                                                             -------------  ----------
<S>                                                          <C>            <C>
RECONCILIATION OF NET INCOME TO NET CASH
    PROVIDED (USED) FROM OPERATING ACTIVITIES
  Net income                                                 $    279,936   $ 250,791
  Adjustments to reconcile net income to net cash
  provided (used) from operating activities:
      Depreciation and amortization                                74,574      72,570
      Provision for loan losses                                   117,070     105,903
      Increase in cash surrender value of insurance               (36,695)    (24,705)
      Loan sales net proceeds                                  (1,858,718)    269,500
      Decrease/(Increase) in accrued interest receivable
        and other assets                                           10,854     (11,483)
      Increase/(Decrease) in operating accounts payable and
        other liabilities                                          90,427      (5,020)
      Deferred loan origination fees                                1,288      11,494
      Gain on sale of other real estate                             8,157         -0-
      Accrued Income taxes net of prepaid taxes                  (119,871)     42,939
      Investment amortization, net of accretion                    28,687      20,956
                                                             -------------  ----------
                                                              ($1,404,291)  $ 732,945
                                                             =============  ==========
</TABLE>

See  accompanying  Notes  to  Consolidated  Financial  Statements.


                                        4
<PAGE>
NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS:

1.   Basis  of  Presentation
     -----------------------

     The  accompanying  unaudited  condensed  financial  statements  have  been
prepared in accordance with generally accepted accounting principles for interim
financial  information  and with the instructions to Form 10-QSB and Item 310(b)
of  Regulation S-B of the Securities and Exchange Commission.  Accordingly, they
do  not include all the information and footnotes required by generally accepted
accounting  principles  for  complete  financial  statements.  In the opinion of
management, all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included.  Operating results for the
six  months  ended  June 30, 2003, are not necessarily indicative of the results
that  may  be  expected  for  the  year  ended  December  31, 2003.  For further
information,  refer  to  the  consolidated  financial  statements  and footnotes
thereto  for  the Company's fiscal year ended December 31, 2002, included in the
Company's  Form  10-KSB  for  the  year  ended  December  31,  2002.

2.   Cash  Flows
     -----------

     For  purposes  of  reporting  cash flows, cash and cash equivalents include
cash  on  hand,  unrestricted  amounts  due from banks, overnight investments in
repurchase  agreements,  and  federal  funds  sold.

3.   Comprehensive  Income
     ---------------------

<TABLE>
<CAPTION>
       Comprehensive  income  consists  of :
                                                    Six Months Ended
                                                         June 30,
                                                   ---------------------
                                                      2003       2002
                                                   ----------  ---------
<S>                                                <C>         <C>
         Net Income                                $ 279,936   $ 250,791
         Unrealized gain on investment securities
         available for sale, net of income taxes     (14,289)     25,042
                                                   ----------  ---------
         Comprehensive Income                      $ 265,647   $ 275,833
                                                   ==========  =========
</TABLE>


                                        5
<PAGE>
     This Report contains statements which constitute forward-looking statements
within  the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of  the Securities Exchange Act of 1934.  These statements appear in a number of
places in this Report and include all statements regarding the intent, belief or
current  expectations of the Company, its directors or its officers with respect
to, among other things: (i) the Company's financing plans; (ii) trends affecting
the  Company's financial condition or results of operations; (iii) the Company's
growth  strategy and operating strategy; and (iv) the declaration and payment of
dividends.  Investors are cautioned that any such forward-looking statements are
not  guarantees  of  future performance and involve risks and uncertainties, and
that  actual  results  may  differ  materially  from  those  projected  in  the
forward-looking  statements  as a result of various factors discussed herein and
those  factors  discussed in detail in the Company's filings with the Securities
and  Exchange  Commission.

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF  OPERATIONS.

     Easton  Bancorp,  Inc. (the "Company") was incorporated in Maryland on July
19,  1991,  to become a one-bank holding company by acquiring all of the capital
stock  of Easton Bank & Trust Company (the "Bank") upon its formation.  The Bank
commenced  business  on July 1, 1993, and the only activity of the Company since
then  has  been the ownership and operation of the Bank.  The Bank was organized
as  a nonmember state bank under the laws of the State of Maryland.  The Bank is
engaged  in  a general commercial banking business, emphasizing in its marketing
the  Bank's local management and ownership, from its main office location in its
primary  service  area, Talbot County, Maryland.  During 1999, the Bank opened a
full-service  branch office in Denton, Maryland, which is in Caroline County. In
addition,  during  2001, the Bank opened a full service branch office in Oxford,
Maryland,  which  is  in  Talbot County. In April 2003, the Bank opened a second
full-service  branch  in  Easton,  Maryland.  The  Bank  offers  a full range of
deposit services that are typically available in most banks and savings and loan
associations,  including  checking  accounts, NOW accounts, savings accounts and
other  time  deposits of various types, ranging from daily money market accounts
to  longer-term  certificates  of deposit.  In addition, the Bank offers certain
retirement  account  services, such as Individual Retirement Accounts.  The Bank
offers a full range of short- to medium-term commercial and personal loans.  The
Bank  also  originates  and  holds  or sells into the secondary market fixed and
variable rate mortgage loans and real estate construction and acquisition loans.
Other  bank  services  include  cash  management  services,  safe deposit boxes,
traveler's  checks,  direct  deposit  of payroll and social security checks, and
automatic drafts for various accounts. The Bank also offers for sale non-deposit
products  such as mutual funds, variable and fixed annuities and long term care.

     The  following  discussion  of  the  financial  condition  and  results  of
operations  of  the  Company  should  be  read in conjunction with the Company's
financial  statements  and  related  notes  and  other  statistical  information
included  elsewhere  herein.

Results  of  Operations
-----------------------

     Net  income  for  the Company for the three months ended June 30, 2003, was
$143,544,  compared  to  $138,298  during  the corresponding period of 2002. Net
income  for  the  six  months  ended  June  30,  2003, was $279,936, compared to
$250,791  for  the  corresponding  period  of  2002.

     Net interest income increased $228,692 and other operating income increased
$134,317; however, these increases were offset by increases of $308,897 in total
operating  expenses  and  $13,800  in income taxes. The increase in net interest
income  is  primarily  due  to  declining  interest  rates,  which resulted in a
decrease  in  interest  expense  of  $54,826  and an increased volume of earning
assets.  Despite  the  decreasing  yields  on  earning  assets, interest revenue
increased  $173,866  as  a  result  of growth of the Bank. The increase in total
operating  expenses  is  attributed  to  an increase in salaries and benefits of
approximately  $211,887,  an  increase  of  $23,971  in occupancy, furniture and
equipment  and  an  increase  in  other  operating  expenses of $73,039, all due
primarily  to  the  Marlboro  Avenue branch in Easton, which was opened in April
2003.


                                        6
<PAGE>
The  following  table  depicts  interest  income  on  earning assets and related
average  yields  as well as interest expense on interest-bearing liabilities and
related  average rates paid for the six months ended June 30, 2003, and the year
ended  December  31,  2002:

<TABLE>
<CAPTION>
                                             C O N S O L I D A T E D           C O N S O L I D A T E D
                                             ------------------------         ------------------------
                                 AVERAGE BALANCES, INTEREST, AND YIELDS  AVERAGE BALANCES, INTEREST, AND YIELDS
                                           For the Six Months Ended              For the Year Ended
                                                 June 30, 2003                   December 31, 2002
                                                 -------------                   -----------------
                                        Average                          Average
                                        balance     Interest   Yield     balance     Interest   Yield
<S>                                    <C>          <C>         <C>     <C>          <C>         <C>
ASSETS
Federal funds sold                     $ 2,007,119  $   12,147   1.20%  $ 3,133,360  $   51,816   1.65%
Interest-bearing deposits                      -0-         -0-                  -0-         -0-
Investment securities:
  State and municipal bonds                208,133       6,442   6.19%       99,684       6,181   6.20%
  U. S. Agencies & GNMA                  4,490,948      82,591   3.68%    5,255,854     241,177   4.59%
  Other                                    444,585      10,079   4.57%      431,500      24,024   5.57%
                                       -----------  ----------  ------  -----------  ----------  ------
   Total investment securities           5,143,666      99,112   3.85%    5,787,038     271,382   4.69%
                                       -----------  ----------  ------  -----------  ----------  ------
Loans:
  Demand and time                       18,680,587     535,668   5.78%   16,758,375   1,067,587   6.37%
  Mortgage                              57,868,394   1,915,109   6.67%   48,093,350   3,468,875   7.21%
  Installment                            3,632,577     155,125   8.61%    3,717,123     340,985   9.17%
                                       -----------  ----------  ------  -----------  ----------  ------
   Total loans                          80,181,558   2,605,902   6.55%   68,568,848   4,877,447   7.11%

Allowance for loan losses                  989,871                          830,372
                                       -----------                      -----------
   Total loans, net of allowance        79,191,687   2,605,902   6.64%   67,738,476   4,877,447   7.20%
                                       -----------  ----------  ------  -----------  ----------  ------
Total interest-earning assets           86,342,472   2,717,161   6.35%   76,658,874   5,200,645   6.78%
                                                    ----------  ------               ----------  ------
Noninterest-bearing cash                 2,790,010                        2,093,216
Bank premises and equipment              1,627,368                        1,594,570
Other assets                             2,110,022                        1,870,535
                                       -----------                      -----------
        Total assets                   $92,869,872                      $82,217,195
                                       ===========                      ===========

LIABILITIES AND STOCKHOLDERS'
EQUITY
Interest-bearing deposits
  Savings and NOW deposits             $18,052,093  $   54,638   0.61%  $15,225,692  $  167,992   1.10%
  Money market                           8,997,584      53,694   1.20%    7,054,689      95,885   1.36%
  Other time deposits                   42,691,491     744,268   3.52%   42,768,276   1,609,468   3.76%
                                       -----------  ----------  ------  -----------  ----------  ------
Total interest-bearing deposits         69,741,168     852,600   2.47%   65,048,657   1,873,345   2.88%
Noninterest-bearing deposits             8,980,636         -0-            7,981,612         -0-
                                       -----------  ----------          -----------  ----------
Total deposits                          78,721,804     852,600   2.18%   73,030,269   1,873,345   2.57%
Borrowed funds                           7,360,915     122,005   3.30%    2,958,155     123,125   4.16%
                                       -----------  ----------  ------  -----------  ----------  ------
                                        86,082,719     974,605   2.28%   75,988,424   1,996,470   2.63%
                                                    ----------  ------               ----------  ------
Other liabilities                          442,604                          305,658
Stockholders' equity                     6,344,549                        5,923,113
                                       -----------                      -----------
        Total liabilities and
        stockholders' equity           $92,869,872                      $82,217,195
                                       ===========                      ===========

Net interest spread                                              4.06%                            4.15%
                                                                ======                           ======

Net interest income                                 $1,742,556                       $3,204,175
                                                    ==========                       ==========
Net margin on interest-earning assets                            4.07%                            4.18%
                                                                ======                           ======
<FN>
-------------------------------
Interest on tax-favored investments and loans are reported on a fully taxable equivalent basis.
</TABLE>


                                        7
<PAGE>
     The  Bank's  loan  portfolio (excluding loans held for sale) increased from
$71.5  million  at  December  31,  2002, to $80.5 million at June 30, 2003.  The
Bank's  provision  for  loan  losses  was $58,815 for the quarter ended June 30,
2003,  and  $117,070 for the six months ended June 30, 2003, compared to $53,088
for  the quarter ended June 30, 2002, and $105,903 for the six months ended June
30,  2002.

     The  allowance for loan losses was $1,069,489 at June 30, 2003, or 1.31% of
total  loans (excluding loans for sale), compared to $996,874 at March 31, 2003,
or  1.32%  of  total  loans  (excluding  loans  held  for sale), and $924,859 at
December  31, 2002, or 1.28% of total loans (excluding loans held for sale). The
level  of the allowance for loan losses represents management's current estimate
of  future losses in the loan portfolio; however, there can be no assurance that
loan  losses  in future periods will not exceed the allowance for loan losses or
that  additional  increases  in  the  allowance  will  not  be  required.


     Activity in the allowance for loan losses is shown below:

<TABLE>
<CAPTION>
                  ALLOWANCE FOR LOAN LOSSES

                                                  June 30,     December 31,
                                                    2003           2002
                                                 -----------  --------------
<S>                                              <C>          <C>
Balance at beginning of year                     $  924,859   $     750,768

Loan Losses:
     Commercial                                         -0-         125,187
     Real Estate                                        -0-           8,000
     Consumer                                         5,191          19,050
                                                 -----------  --------------
          Total loan losses                           5,191         152,237
                                                 -----------  --------------

Recoveries on loans previously charged off
     Commercial                                      22,836           3,975
     Real Estate                                        -0-             -0-
     Consumer                                         9,915          31,920
                                                 -----------  --------------
          Total loan recoveries                      32,751          35,895
                                                 -----------  --------------

Net loan losses                                     (27,560)        116,342
Provision for loan losses charged to expense        117,070         290,433
                                                 -----------  --------------
Balance at end of year                           $1,069,489   $     924,859
                                                 ===========  ==============

Allowance for loan losses to outstanding loans         1.31%           1.28%
 at end of period (excluding loans for sale)

Net charge-offs/(recoveries) to average
    loans - annualized                               (0.04%)           0.17%
</TABLE>


                                        8
<PAGE>
<TABLE>
<CAPTION>
                    NON-PERFORMING ASSETS AND PAST-DUE LOANS

      Nonaccrual loans and loans past due 90 days or more are as follows:


                                     June 30,   December 31,
                                       2003         2002
                                     ---------  -------------
<S>                                  <C>        <C>
Nonaccrual
  Commercial                         $ 131,282  $      33,073
  Mortgage                             182,867        482,822
  Installment                            3,768          8,215
                                     ---------  -------------
                                     $ 317,917  $     524,110
                                     ---------  -------------

Loans past due ninety days or more,
  still accruing interest            $ 230,955  $       1,000
                                     ---------  -------------

Total nonperforming loans            $ 548,872  $     525,110
                                     ---------  -------------

Interest not accrued                 $   6,204  $      14,750
                                     ---------  -------------
</TABLE>

     Noninterest  expense  increased  $181,333 to $850,638 for the quarter ended
June  30, 2003, from $669,305 for the quarter ended June 30, 2002.  The increase
was  primarily related to the increases in salaries and benefits of $122,937 and
an  increase  in  other operating expenses of $32,471.  The increase in salaries
and  benefits was due to annual salary increases, an increase in origination fee
income  earned,  two  new  part-time employees and five new full-time employees.

     Return  on  average  assets and average equity, on an annualized basis, for
the  quarter  ended June 30, 2003, was .60% and 8.91%, respectively, compared to
..78%  and 10.85%, respectively, for the same quarter of 2002.  Return on average
assets and average equity, on an annualized basis, for the six months ended June
30,  2003,  was  .60%  and  9.05%,  respectively,  compared  to  .67% and 9.32%,
respectively,  for  the  same  quarter  of  2002.  Earnings per share on a fully
diluted  basis  for the quarter and the six months ended June 30, 2002, was $.23
and  $.47,  respectively,  compared to $.24 and $.44, respectively, for the same
periods  of  2002.

     The Company's assets ended the second quarter of 2003 at $100.2 million, an
increase  of  $11.9  million, or 13.4%, from $88.3 million at December 31, 2002.
This  increase  can  be  attributed  primarily to an increase in the Bank's loan
portfolio  of $10.9 million. Total borrowings from the Federal Home Loan Bank of
Atlanta  were approximately $9.7 million at June 30, 2003, of which $5.7 million
were  match  funded  on  loans  made  by  the  Bank  to  Bank  customers.

     Management  expects  that  its  2003  income will exceed expenses. Although
management  expects  that  the  Company's  current  profitability will continue,
future  events,  such  as  an unanticipated deterioration in the loan portfolio,
could  reverse  this  trend. Management's expectations are based on management's
best  judgment and actual results will depend on a number of factors that cannot
be  predicted  with  certainty and thus fulfillment of management's expectations
cannot  be  assured.

Liquidity  and  Sources  of  Capital
------------------------------------

     The  $7.5  million increase in deposits from December 31, 2002, to June 30,
2003,  is  primarily  reflected  in  the  increase  in the Bank's loans of $10.9
million offset by the $2.2 million increase in  borrowings from the Federal Home


                                        9
<PAGE>
Loan Bank of Atlanta.  The Company's primary source of liquidity is cash on hand
plus  short-term  investments.  At  June  30,  2003, the Company's liquid assets
totaled  $15.2 million, or 15.20% of total assets, compared to $12.8 million, or
14.52%  of  total  assets, at December 31, 2002.  Another source of liquidity is
the  $12.4  million secured line of credit the Company has from the Federal Home
Loan  Bank of Atlanta, of which $9.7 million is currently used, and the $500,000
unsecured line of credit and the $5.0 million secured line of credit the Company
has  from  another  correspondent  bank,  of  which  $1  million is pledged.  If
additional  liquidity is needed, the Bank will sell participations in its loans.

     In January 2001, the Company invested in a bank owned life insurance policy
on  the life of Jeffrey N. Heflebower, an officer of the Bank. The beneficiaries
of the policy include both the Bank and certain heirs of Mr. Heflebower. To fund
the  policy,  the Bank contributed $1,225,000. Since the purchase of the policy,
the  cash surrender value of the policy has increased approximately $147,000 and
is  now  $1,372,071.  The cash surrender value of the policy is not considered a
liquid  asset  of  the Company. The policy also provides supplemental retirement
benefits  for  Mr.  Heflebower.

     The  capital of the Company and the Bank exceeded all prescribed regulatory
capital  guidelines  at  June  30,  2003.  At June 30, 2003, the Tier 1 leverage
ratio  for  the  Bank was 8.43%.  At June 30, 2003, the Bank had a risk-weighted
total  capital  ratio  of  10.89%,  and  a Tier 1 risk-weighted capital ratio of
9.64%.  The  Company expects that its current capital and short-term investments
will  satisfy  the  Company's  cash  requirements  for  the  foreseeable future.
However, no assurance can be given in this regard as rapid growth, deterioration
in  the  loan quality or poor earnings, or a combination of these factors, could
change  the  Company's  capital  position  in a relatively short period of time.

Dividends
---------

     The  Board of Directors declared a $0.05 per share cash dividend to be paid
to shareholders of record on January 31, 2003. The dividend was paid on February
15,  2003.  On April 28, 2003, the Board of Directors declared a $0.05 per share
cash  dividend  to  be  paid  to  shareholders  of record on April 30, 2003. The
dividend  was  paid  on  May  15, 2003. On July 28, 2003, the Board of Directors
declared a $0.05 per share cash dividend to be paid to shareholders of record on
July 31, 2003. The dividend will be paid on August 15, 2003. The declaration and
payment  of  future  dividends  will  depend upon a number of factors, including
future  earnings,  financial  condition,  cash  needs,  and  general  business
conditions.  If  dividends  should be declared in the future, the amount of such
dividends  presently  cannot  be  estimated  and it cannot be known whether such
dividends  would  continue  for  future  periods.

Market  Risk
------------

     Net  interest income of the Company is one of the most important factors in
evaluating  the financial performance of the Company.  The Company uses interest
sensitivity  analysis  to  determine  the  effect of rate changes.  Net interest
income  is  projected  over  a  one-year  period  to  determine the effect of an
increase  or  decrease  in the prime rate of 100 basis points.  If prime were to
decrease  100  basis  points,  the  Company  would  experience a decrease in net
interest  income  of $121,731 if all assets and liabilities maturing within that
period  were  adjusted  for  the rate change.  The sensitivity analysis does not
consider  the likelihood of these rate changes nor whether management's reaction
to  this  rate  change  would  be  to  reprice  its  loans  and  deposits.

ITEM 3.  CONTROLS  AND  PROCEDURES.

     As  of  June  30,  2003,  the  Company carried out an evaluation, under the


                                       10
<PAGE>
supervision  and  with  the participation of its principal executive officer and
principal financial officer, of the effectiveness of the design and operation of
the Company's disclosure controls and procedures.  Based on this evaluation, the
principal  executive  officer and principal financial officer concluded that, as
of June 30, 2003, the Company's disclosure controls and procedures are effective
in  timely  alerting them to material information required to be included in the
Company's  periodic  SEC reports.  The design of any system of controls is based
in  part  upon  certain  assumptions  about the likelihood of future events, and
there  can  be no assurance that any design will succeed in achieving its stated
goals  under  all  potential  future  conditions,  regardless  of  how  remote.

                                    PART II
                                OTHER INFORMATION

ITEM 1.  LEGAL  PROCEEDINGS.

     There are no material pending legal proceedings to which the Company or the
Bank is a party or of which any of their property is the subject.

ITEM 2.  CHANGES  IN  SECURITIES.

     On  various dates from April 21, 2003, through June 25, 2003, organizers of
the  Bank  and  family  members  of organizers of the Bank exercised warrants to
acquire  198,674  shares  of  the Company's Common Stock.  The warrants had been
issued to the organizers in recognition of the financial risks undertaken by the
organizers  in  advancing  organization  and  operating  expenses of the Bank in
connection  with  its  formation and organization.  The warrants had an exercise
price of $10 per share, which resulted in the Company receiving $1,986,740.  The
Common  Stock  issued  pursuant  to  the  exercise  of  the  warrants represents
unregistered  securities,  which  issuance  was  considered  to  be  exempt from
registration  under  the  Securities  Act  of 1933 pursuant to Section 4(2) as a
transaction by an issuer not involving any public offering.

ITEM 3.  DEFAULTS  UPON  SENIOR  SECURITIES.

     Not  applicable.

ITEM 4.  SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS.

     The  Company  held  its  Annual Meeting of Stockholders on May 21, 2003, at
which  meeting  all six of management's nominees for the Board of Directors were
re-elected.  The  individuals  re-elected  as  Class III directors were: Jack H.
Bishop, D.D.S., receiving 397,866 votes for and 6,650 votes against or withheld,
with  300  votes  abstaining; Charles T. Capute, receiving 397,866 votes for and
6,650 votes against or withheld, with 300 votes abstaining; David F. Lesperance,
receiving  397,866 votes for and 6,650 votes against or withheld, with 300 votes
abstaining;  Vinodrai  Mehta,  M.D., receiving 397,866 votes for and 6,650 votes
against or withheld, with 300 votes abstaining; Myron J. Szczukowski, Jr., M.D.,
receiving  397,866 votes for and 6,650 votes against or withheld, with 300 votes
abstaining;  and  Jerry L. Wilcoxon, receiving 397,866 votes for and 6,650 votes
against  or withheld, with 300 votes abstaining.  Class I and Class II directors
continuing  in  office  are:  J.  Parker  Callahan,  Jr.,  Stephen W. Chitty, J.
Frederick  Heaton,  D.M.D.,  Thomas  E.  Hill, W. David Hill, D.D.S., William C.
Hill,  William  R.  Houck,  D.D.S., R. Michael S. Menzies, Sr., Roger A. Orsini,
M.D., Mahmood S. Shariff, M.D., James B. Spear, and Sheila A. Wainwright.


                                       11
<PAGE>
ITEM 5.  OTHER  INFORMATION.

         None.

ITEM 6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K.

     (a)  Exhibits.

          11.1 Computation  of  Earnings  Per  Share.

          31   Certification  of  Principal  Executive  Officer  and  Principal
               Financial  Officer  pursuant to Section 302 of the Sarbanes-Oxley
               Act  of  2002.

          32   Certification  of  Principal  Executive  Officer  and  Principal
               Financial  Officer  pursuant to Section 906 of the Sarbanes-Oxley
               Act  of 2002. This Exhibit is not "filed" for purposes of Section
               18  of  the  Securities  Exchange  Act  of  1934  but  is instead
               furnished  as  provided by applicable rules of the Securities and
               Exchange  Commission.

     (b)  Reports  on  Form  8-K.

          There  were  no  reports  on  Form 8-K filed by the Company during the
          quarter  ended  June  30,  2003.


                                       12
<PAGE>
                                   SIGNATURES


     In  accordance  with  the  requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                     EASTON  BANCORP,  INC.
                                   ------------------------
                                        (Registrant)



Date:  August  8, 2003                  By:  /s/ R. Michael S. Menzies, Sr.
      -----------------                    -------------------------------------
                                                 R.  Michael  S.  Menzies, Sr.
                                                 President



Date:  August  8,  2003                 By:  /s/ Pamela  A.  Mussenden
      ------------------                   -------------------------------------
                                                 Pamela  A.  Mussenden
                                                 Assistant  Treasurer
                                                 (Principal  Financial  Officer)


                                       13
<PAGE>
                                INDEX TO EXHIBITS


Exhibit                                                              Sequential
Number        Description                                            Page Number
------        -----------                                            -----------
11.1          Computation  of  Earnings  Per  Share.

31            Certification  of  Principal Executive Officer and Principal
              Financial  Officer  pursuant  to  Section  302  of  the
              Sarbanes-Oxley  Act  of  2002.

32            Certification  of  Principal Executive Officer and Principal
              Financial  Officer  pursuant  to  Section  906  of  the
              Sarbanes-Oxley  Act of 2002. This Exhibit is not "filed" for
              purposes  of  Section  18  of the Securities Exchange Act of
              1934  but  is  instead  furnished  as provided by applicable
              rules  of  the  Securities  and  Exchange  Commission.


<PAGE>